Millions of people from diverse incomes are in arrears with their debt repayments. Bankruptcy is a legal process designed to help businesses and individuals eliminate their debt. You just have to remember that declaring Bankruptcy has a long-term, negative effect on your credit.
Because of the long-term financial and legal implications of Bankruptcy, you will need to seek the advice of a qualified lawyer. There are, however, people who try to file for Bankruptcy without an attorney. It’s referred to as filing pro se.
Bankruptcy lawyers in White Plains, New York, can help their clients with Bankruptcy. The rules are similar whether you file for Bankruptcy in New York or another state.
New York lawyers offer helpful advice to clients on what to expect. They keep them informed on what they’re doing, some of which is –
- Explaining under which chapter they will be filing.
- Advising clients on whether they can hold on to their homes or car.
- Explaining the tax implications of filing.
- Explaining bankruptcy law to clients.
- Assisting with the preparation of the client’s bankruptcy case.
A debt solution
With the jobless rate soaring, the implication is that businesses, families, and individuals are looking at Bankruptcy as a debt solution. There are different types of bankruptcies. You will hear of them referred to as Chapters. Individuals, as an example, can file Chapter 7 or 13 bankruptcy, while a business can file Bankruptcy under Chapter 7 or 11.
Chapter 7 is often the first choice
Chapter 7 bankruptcy is typically the first choice for a person filing for Bankruptcy. It’s because it is quicker, taking roughly just a few months to complete.
People with luxury assets could lose them if considered unnecessary luxury items. Chapter 7 differs from Chapter 13 because Chapter 13 allows people to catch up on their mortgage, rent, or even car payments.
Looking for a viable alternative to Bankruptcy
Being declared insolvent has become an option for many who see it as debt eradication. White Plains Bankruptcy lawyers have their hands full doing a thorough debt analysis. They want to determine if there isn’t perhaps a viable alternative to going ahead with filing for Bankruptcy.
You have to be open with your financial affairs
Bankruptcy lawyers from White Plains, New York, will make an appointment with you to discuss Bankruptcy in detail and to clear up any misconceptions. They are a source of valuable help because they have appropriate training in bankruptcy law and other laws.
Erasing most bills
Bankruptcy can erase most of your bills. The number of people filing for Bankruptcy has grown. This is also because of creditors relentlessly instituting legal proceedings against people to attach their assets or even a portion of their salary – if they still have a job.
Typical examples of bills that can be erased are your credit cards, medical bills, personal loans and utility payments.
You have to bear in mind that you can’t erase all your debt and things such as tax debt can’t be erased in Bankruptcy. That’s why you need an excellent White Plains Bankruptcy lawyer who can explain simply how Bankruptcy works. They can help you to establish if Bankruptcy can, in fact discharge enough bills to make the proceedings effective.
Bankruptcy exemption laws
With Bankruptcy, you won’t lose everything. But that’s why you need a good bankruptcy lawyer. They will explain to you how you can make use of bankruptcy exemption laws in your state to protect your property. It’s important to know what property is exempt in your state.
Unlike most of the other states, New York lets you select between the state exemption list and the list of federal bankruptcy exemptions.
If you want to file for Bankruptcy, get advice from a skilled, reputable attorney to see if Bankruptcy is right for you. Sometimes Bankruptcy won’t be right for you and then you need the advice of a lawyer so that you don’t make terrible life-changing decisions.
Will bankruptcy work for you?
Everyone’s situation is different, and you need to talk to a bankruptcy attorney to see if Bankruptcy will work for you. In addition, you will need to attend an approved credit counseling session within 180 days before your bankruptcy case is filed.
Bankruptcy needs to be fully understood so that the benefits can be clear. Declaring Bankruptcy is just one debt solution that exists for those with financial problems. Bankruptcy doesn’t spell the end of the road for you, but with the best bankruptcy lawyer, it can be a well-thought-out decision towards a stress-free future.